Directorate for Public Governance
Infrastructure: make sure the asset performs throughout its life
OECD Framework for the Governance of Infrastructure
9. MAKE SURE THE ASSET PERFORMS THROUGHOUT ITS LIFE
Ensure a focus on the performance of the asset throughout its lifespan by putting in place monitoring systems and institutions.
WHY IS IT IMPORTANT?
- It can be difficult to oversee the performance of infrastructure service delivery thereby maintaining value for money through the performance of the asset.
- The establishment of a regulator strengthens the public interest, makes service providers more accountable, and enables an independent price-setting process;
- Some have responded by enhancing the skills of sectoral units and regulators and streamlining the role and availability of specialised advisers;
- Others have set up dedicated units, especially in the field of PPPs, which are contract based, but increasingly with a broader remit of infrastructure in general.
- Central agencies such as the Central Budget Authority, Supreme Audit Institution and regulatory authorities should play their part and retain the appropriate level of responsibility during the operational phase.
- Special care should also be taken to ensure that value for money is maintained during renegotiation.
KEY POLICY QUESTIONS:
- Is there a strategy for how performance of the asset throughout the life of the asset is to be ensured?
- Are the line departments, sector regulators or Supreme Audit Institution responsible for monitoring asset performance?
- Are there programs in place for training and empowering relevant institutions?
- Do PPP/concession contracts state the required output and performance?
CENTRAL INFRASTRUCTURE BODIES FOCUS ON DEVELOPMENT BUT LESS ON MONITORING AND ASSESSMENT
- Policy document for ensuring performance from assets regulated by agency (sector regulator) or by contract with line department or similar;
- Strategy for re-negotiations;
- Ex-post evaluation of value for money.
GETTING INFRASTRUCTURE RIGHT
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